Capability Approach and Multidimensional Well-Being: The Italian Case of BES

This paper lies within the debate on GDP and beyond and provides an empirical assessment of the Italian equitable and sustainable well-being (BES) as a composite measure of multidimensional well-being. From a policy perspective, the goal is to deliver a reading of the Italian BES able to shed light on its usability. The aim is to offer a suitable method for making the information included in the BES more viable for policy design. To this end, the paper is grounded in an interpretation of the Italian BES through the lens of the capability approach and investigates the relations among BES indicators and life domains. The empirical assessment uses Italian data from the national survey “Aspects of daily life” and applies the Structural Equation Model to estimate several life capabilities and their causal path. Outcomes show the interrelated nature of multi-dimensional well-being and prove the role of exogenous causes in the determination of capabilities. Moreover, the paper provides a final ranking analysis where Italian regions are compared based on their position per capability and income performance. Results confirm, on one hand, the disparity of income and well-being measurements and the importance of multidimensional assessment for human development and, on the other, the importance of focusing on the single components of multidimensional well-being and their interconnections.     

Measuring World Better Life Frontier: A Composite Indicator for OECD Better Life Index

The OECD Better Life initiative recently released a comprehensive set of 11 indicators of well-being covering a group of countries. Each individual indicator corresponds to a key topic that is essential to well-being. However, the problem of aggregating them is left to users of this dataset. Using these as individual indicators, we propose a composite indicator of overall well-being, which is intended to measure the performance of each country in terms of providing well-being to its people. The ‘benefit of the doubt’ approach (BOD), a well-known aggregation tool based on a weighed sum, assigns the most favourable weights for each entity under investigation. BOD may also be considered to evaluate the performance of each entity in terms of its efficiency. Regarding individual indicators as outputs, it constructs the benchmark production frontier from observed individual indicators. A composite indicator based on BOD equals the distance between each entity’s individual indicator and the production frontier, indicating its efficiency. It is widely considered that the well-being of a country’s people stems from its productive base, which is characterized by capital assets and social infrastructures. Thus, the productive base can be considered the input used to produce well-being, which is reflected by individual indicators. Therefore, when we apply BOD to aggregate individual well-being indicators across countries, we implicitly assume that all countries have the same productive base, as BOD addresses only the output and neglects the input. This inaccurate assumption leads to a distorted performance measure. Data envelopment analysis (DEA), in which BOD has its roots, is a tool to measure the efficiency of each entity by allowing for differences in inputs as well as outputs across entities. DEA also measures efficiency by using the distance to the production frontier; however, unlike BOD, DEA constructs the production frontier more accurately by utilizing the information of inputs as well as outputs, leading to a better performance measure. We apply DEA to aggregate 11 individual well-being indicators into a composite indicator using the World Bank’s estimates of each country’s productive base. The composite indicator based on BOD is distributed similarly to and is highly correlated with the existing Human Development Indicator (HDI). It is also positively correlated with GDP per capita. On the other hand, we show that the composite indicator based on DEA is negatively correlated with HDI as well as GDP per capita.     

Media Use and Satisfaction with Democracy: Testing the Role of Political Interest

An interesting measure for equitable and sustainable well-being has been proposed recently by the National Institute of Statistics in Italy and the National Council for Economy and Labour. It is called BES (from the Italian Benessere Equo e Sostenibile). A set of indicators, partitioned into several domains and themes, is used for measuring the BES. Taking into account prior knowledge of both the structure of this set of indicators and the relationships among them, the paper proposes a hierarchical composite model for measuring and modeling the BES of the Italian provinces. This hierarchical model allows us to synthesize individual indicators into single indexes in order to construct composite indicators at a global and a partial level. Moreover, we analyze the relationships among the different domains and themes as well as the effects of these on equitable and sustainable well-being, in order to search for strongly influential factors. In order to estimate the parameters of the model, we use both Partial Least Squares path modeling and a new method, called Quantile Composite-based path modeling. In particular, Partial Least Squares path modeling is used to estimate average effects in the network of relationships between variables, while with Quantile Composite-based path modeling we investigate whether the magnitude of these effects changes across different parts of the variable distributions, providing a more complete picture and uncovering specific local leveraging factors for improvement. A final ranking of the Italian provinces, according to the BES composite indicator, is also provided at the national level and for different geographic areas of Italy.     

Constructing Well-Being and Poverty Dimensions on Political Grounds

The paper addresses the problem of justifying ethically sound dimensions of poverty or well-being for use in a multidimensional framework. We combine Sen’s capability approach and Rawls’ method of political constructivism and argue that the constitution and its interpretative practice can serve as an ethically suitable informational basis for selecting dimensions, under certain conditions. We illustrate our Constitutional Approach by deriving a set of well-being dimensions from an analysis of the Italian Constitution. We argue that this method is both an improvement on those used in the existing literature from the ethical point of view, and has a strong potential for providing the ethical basis of a conception of well-being for the public affairs of a pluralist society. In the final part, we elaborate on the implications for measuring well-being based on data, by ranking Italian regions in terms of well-being, and pointing out the differences in results produced by different methods.     

Capabilities and Choices: Do They Make Sen’se for Understanding Objective and Subjective Well-Being? An Empirical Test of Sen’s Capability Framework on German and British Panel Data

In Sen’s Capability Approach (CA) well-being can be defined as the freedom of choice to achieve the things in life which one has reason to value most for his or her personal life. Capabilities are in Sen’s vocabulary therefore the real freedoms people have or the opportunities available to them. In this paper we examine the impact of capabilities alongside choices on well-being. There is a lot of theoretical work on Sen’s capability framework but still a lack of empirical research in measuring and testing his capability model especially in a dynamic perspective. The contribution of the paper is first to test Sen’s theoretical CA approach empirically using 25 years of German and 18 years of British data. Second, to examine to what extent the capability approach can explain long-term changes in well-being and third to view the impact on subjective as well as objective well-being in two clearly distinct welfare states. Three measures of well-being are constructed: life satisfaction for subjective well-being and relative income and employment security for objective well-being. We ran random and fixed effects GLS models. The findings strongly support Sen’s capabilities framework and provide evidence on the way capabilities, choices and constraints matter for objective and subjective well-being. Capabilities pertaining to human capital, trust, altruism and risk taking, and choices to family, work-leisure, lifestyle and social behaviour show to strongly affect long-term changes in subjective and objective well-being though in a different way largely depending on the type of well-being measure used.     

The Effect of Cultural Capital on High School Dropout: An Investigation in the Italian Provinces

This article studies at a detailed geographical level the relation between cultural capital and high school dropout. Bronfenbrenner’s systemic theory and Heckman’s perspective on cognitive/non-cognitive skills are considered as theoretical framework. We analyzed data from 103 Italian provinces employing Covariance Structure Analysis and spatial indices of autocorrelation. We found a consistent protective effect of cultural capital on dropout, independently of economic performance, in Central and Southern provinces, but not in Northern provinces. Spatial analyses showed very heterogeneous patterns of autocorrelation for dropout (especially across Southern provinces) even between neighboring areas, in spite of a more compact clustering when considering cultural and economic indicators. These results indicate that living in an environment with animated cultural life might enhance students’ non-cognitive skills, thus fostering their involvement in formative activities and the development of their human capital.     

The Italian Regional Well-Being in a Multi-expert Non-additive Perspective

This paper designs a multidimensional index of well-being for 20 Italian regions, based on a set of 41 indicators organized in an original hierarchical structure, a decision-tree whose four main pillars are Economy, Society, Environment and Health. Our novel approach combines the objective dimension of the evaluation (a comprehensive set of statistical indicators) within a flexible non-additive aggregation model (the Choquet integral) characterized with the preferences of informed Italian stakeholders. Adopting the Choquet integral allows us to overcome the well-known limitations embedded in the linear models, by assigning a weight (capacity) to any coalitions of dimensions, and by allowing a different degree of substitutability within each decision node in the tree. The weights and the parameters for the aggregation are elicited through a computer-based nominal group technique, a method which reduces the occurrences of drastically dissenting valuations and the potential expert-selection bias. Our results show that experts’ perception of synergies and redundancies is quite heterogeneous between levels and nodes in the tree. Moreover, well-being measures are much influenced by the degree of substitutability embedded in the experts’ preferences. Overall, the Italian picture looks more heterogeneous when analysed through the Choquet integral, with respect to a linear model.     

Modeling Local BES Indicators by Copula-Based Bayesian Networks

In Italy, the measure of the Equitable and Sustainable Well-being is provided by the Italian Institute of Statistics by means of a dashboard of basic and composite indicators. To investigate the dependence structure between the different domains of well-being, we propose the use of Non-Parametric Bayesian Networks based on the normal copula distribution, that allow to explore the conditional independence relationships between the composite indicators. The main advantage of the non-parametric models is that, as opposed to the parametric approach, they do not require any assumption on the marginal distributions of the variables. The proposed model is applied to the Equitable and Sustainable Well-being indicators measured at the provincial level and enriches the analysis of well-being by inspecting similarities and differences between Italian urban areas and territories.

     

The Relationship Between Age and Subjective Well-Being: Evidence from Five Capital Cities in Mainland China

Since the mid-60s of the twentieth-century, the researchers have made lots of studies on the relationship between age and subjective well-being (SWB), and yielded some contradictory conclusions. By using an urban sample (N = 3,099) from five capital cities in Mainland China, this paper presents some new evidence on this issue in the Chinese context. The paper reconfirms a significant relationship between age and subjective well-being, and argues that different measure instruments of subjective well-being lead to different types of relationship. It is partly testified that subjective well-being follows approximate U-shape across age groups, and the minimum point lies in the age band 45–49. It is also found that age is not always a strong significant predictor of subjective well-being when a different dependent variable was adopted to multiple regression analysis. It is suggested that the researchers should pay more attention to the specific content of subjective well-being while examining the relationship between age and subjective well-being.     

Living Near to Attractive Nature? A Well-Being Indicator for Ranking Dutch,Danish, and German Functional Urban Areas

While nature is widely acknowledged to contribute to people’s well-being, nature based well-being indicators at city-level appear to be underprovided. This study aims at filling this gap by introducing a novel indicator based on the proximity of city-residents to nature that is of high-amenity. High-amenity nature is operationalized by combining unique systematic data on people’s perceptions of what are the locations of attractive natural areas with data on natural land cover. The proposed indicator departs from the usual assumption of equal well-being from any nature, as it approximates the ‘actual’ subjective quality of nature near people’s homes in a spatially explicit way. Such indicator is used to rank 148 ‘cities’ in the Netherlands, Denmark, and Germany. International comparability of the indicator is enhanced by the use of a definition of cities as functional urban areas (FUAs), which are consistently identified across countries. Results demonstrate that the average ‘nearness’ of FUA populations to high amenity nature varies widely across the observed FUAs. A key finding, that complements insights from existing city-level indicators, is that while populations of FUAs with higher population densities may live relatively far from nature in general, they also live, on average, closer to high-amenity nature than inhabitants of lower density FUAs. Our results may stimulate policy-debates on how to combine urban agglomeration with access to natural amenities in order to account for people’s wellbeing.     

东部不同规模城市流动人口的主观幸福感及其影响因素

基于2012年东部十省市流动人口动态监测调查数据,文章采用序次 Logistic 回归模型,对比分析了东部不同规模城市流动人口的主观幸福感及其影响因素。研究发现：东部不同规模城市流动人口的主观幸福感有着较为明显的地区差异,流动人口主观幸福感与城市规模之间存在倒 U 型关系。影响不同规模城市流动人口主观幸福感的因素不尽相同,但总体而言,影响超大城市流动人口主观幸福感的因素远远多于Ⅰ型小城市,住房性质成为经济因素中影响不同规模城市流动人口主观幸福感最为突出且普遍的因素,而社会因素对于不同规模城市流动人口主观幸福感的影响作用要大于经济因素。最后,提供了相关政策启示。     

The Index of Household Financial Condition,Combining Subjective and Objective Indicators: An Appraisal of Italian Households

With data from the Italian Survey of Household Income and Wealth, we present an Index of Household Financial Condition and quantify with it the position of households between 2004 and 2010. The Index of Household Financial Condition is composed of subjective and objective indicators, which enable to capture differently the existing uncertainty concerning the future development of a household’s financial situation. We show with a measurement model based on multi-group confirmatory factor analysis (MGCFA) that the proposed Index is two-dimensional and comprises financial position and financial prudence. Through application of the MGCFA, we show that the interrelations between the indicators had not changed at four measurement occasions (2004–2010), and thus the proposed set comprises a coherent and time-invariant framework for measuring two dimensions of the latent concept: financial condition. Established measurement invariance in the MGCFA framework allows an assessment of trend in financial position and financial prudence of Italian households. We show that the financial position of Italian households improved in the period 2004–2006 and later declined. Improvement of the financial prudence was observed, however, till 2008. Finally, we incorporate a set of socioeconomic features of Italian households into a structural equation model. With the provided set of indicators, we find positive relation between age and both financial position and prudence, but also we show the positive impact of white-collar jobs on scores in each of the dimensions of the financial condition.     

Exploring Multidimensional Well-Being in Switzerland: Comparing Three Synthesizing Approaches

Well-being is increasingly conceptualized and measured from a multidimensional perspective in order to provide policy makers and the general public with the necessary tools for monitoring social change. Synthetic measures of multidimensional concepts such as well-being are, therefore, needed. This paper provides a systematic comparison of three methodological approaches applicable in a top-down perspective to construct a synthetic multidimensional measure of well-being using the same theoretical framework and the same data. The three methodologies used are the confirmatory factor analysis, the Alkire and Foster counting approach and the posetic approach. The first two methodologies belong to the family of composite indicators, the most common way to synthetize multidimensional information. The third was developed in order to deal with the construction of composite indicators’ two major issues, namely weighting and aggregating. The main contribution of this paper is methodological; it aims at discussing the advantages and drawbacks of the three methodologies, and at identifying their similarities and specificities.     

Country Performance Evaluation: The DEA Model Approach

This study employs four data envelopment analysis (DEA) models to evaluate the performance efficiency of 21 OECD countries and assess whether the undesirable outputs are over-produced relative to desirable outputs. In evaluating the performance of OECD countries via super-efficiency models, this study focuses on two aspects. First, employing the concept of the Sharpe ratio, we propose another method to deal with undesirable outputs (the unemployment rate, inflation, and air pollution) in DEA. This approach can reveal the relative importance of desirable outputs and undesirable outputs, detect whether undesirable outputs are over-produced, and obtain more accurate efficiency scores. Second, we examine whether knowledge capital can improve a country’s efficiency scores. Our empirical results support the above arguments. In addition, research and development (R&D) expenditures, the proxy variable for knowledge capital, can indeed improve countries’ efficiency scores, implying that the endogenous growth theory is supported in OECD countries. Evidently, whether the undesirable outputs are included in the DEA models and are properly treated is crucial in the evaluation of efficiency values.

     

Cultural Access and Mental Health: An Exploratory Study

Loss of well-being, rising rates of depression and various psychological illnesses are a public health concern. This study aims to explore the associations between cultural access and mental illness. Applying a panel methodology to the 20 Italian regions (2002–2007 period) the relationship between public health expenditure per-capita (the dependent variable) and hospital discharge rates for different illnesses (the regressors) has been estimated. Then the impact of the private spending in culture (the regressors) on the mental illness—as approximated by the discharge rate for mental illness—(the dependent variable), has been verified via generalised method of moments (GMM) approach. Data came from the National Census of the Italian Institute of Statistics (ISTAT). The results of empirical analysis have highlighted how the discharge rate for mental illness is substantially improved by some forms of cultural consumptions. The coefficients associated with unemployment rates (the control variables) have a positive impact on mental illness, thus suggesting that unemployment has an impact on the discharge rate for mental illness; the greatest impact is observed for the long-term unemployment rate. The results are beneficial for designing and implementing preventive strategies to reduce mental illness and public health expenditure by considering the impact of cultural access.     

Towards the Use of Crowdsourced GIS Data to Georeference Child Well-Being Globally

Child well-being is described as a social problem, such that in most cases social indicators defined by experts are used, without much input from local and heterogeneous communities. This article makes the case for an innovative way to monitor and explore child well-being globally, while also critiquing currently used indices. Based on Nussbaum’s Capabilities approach, we propose to formulate indices by using GIS and a comprehensive list of relevant geospatial datasets, using uniquely designed meta-layers and feature catalogues. Moreover, we argue that these geospatial data can be collected and mapped by the local communities, through participatory approaches, thus not relying on authoritative engagement and data. This will contribute to the empowerment of communities, making them relevant stakeholders with valued contribution to the process. This paper outlines preliminary work related to concepts and ideas, whereas future work is planned to develop an elaborate and comprehensive GIS model, and conduct further spatial analysis in the framework of a small scale campaign.     

Clustering of the Italian Regions Based on Their Equitable and Sustainable Well-Being Indicators: A Three-Way Approach

Social Indicators Research - The aim of this study is to provide an analysis of the Italian regions according to their equitable and sustainable well-being indicators pertaining to several...     

Walking a well-being tightrope: young people in Australia

The economic and social contribution young people make to society is increasingly important as the population ages. Yet a substantial number of young people face economic and social challenges that have an impact on their current and future well-being. Independent indicators are often used to describe what we know about how young people are faring, but these fail to show how young people are doing holistically, across their whole life. If we are to better understand and improve young people??s well-being and their lives more generally, it is critical that research establishes the connections and interactions between life domains. This paper uses a well-being framework and secondary analysis of national statistics to begin to understand how young people are faring when we cross economic outcomes with other social indicators. It argues that some Australian young people fare poorly across a large number of other social indicators and thus may be walking a tightrope in regard to their well-being and well-becoming. This paper also aims to generate a dialogue about using a well-being framework for future research with and about young people.     

Economic Well-Being in U.S. Metropolitan Statistical Areas

In recent years there has been increased interest from economists and policy makers to measure a nation’s economic well-being. This paper extends this development to US Metropolitan Statistical Areas (MSAs). An economic well-being index is constructed using indicators of income, education, crime, health and pollution. The analysis allows comparison of a MSA with another and with itself over time. The index is not highly correlated with real gross domestic product per capita and therefore adds value to the discussion of economic well-being in MSAs. However, it is shown that the index may violate social choice principles thereby reducing its usefulness.     

The Impact of Adaptive Preferences on Subjective Indicators: An Analysis of Poverty Indicators

Subjective indicators are often criticized since they are thought to be particularly affected by the phenomenon of adaptive preferences and social comparison. For social policy purposes, processes of downward adaptation in disadvantaged individuals are of particular importance, i.e., it is supposed that such people compare themselves with others who are in the same precarious situation or even worse off and, as a result, lower their expectations and adapt their aspirations and preferences to their material and financial constraints. Based on the 2006–2010 waves of the Swiss Household Panel study, this contribution examines whether, and to what degree, indicators of material deprivation, subjective poverty and subjective well-being are affected by such downward adaptations. Our empirical analysis demonstrates that the bias caused by adaptation processes varies considerably among different measures and that, although subjective indicators are indeed often affected by this phenomenon, there are also robust measures, notably Townsend’s deprivation measure, Halleröd’s proportional deprivation index and the subjective well-being measure of general life satisfaction.